Ranbaxy Laboratories, a subsidiary of Daiichi Sankyo Co of Japan, has suffered heavy setback during the year ended December 2011 due to higher exceptional charges. The company's net loss reached at Rs.2,900 crore as against a net profit of Rs.1,497 crore in the previous year mainly on account of provision of Rs.2,648 crore (US$ 500 million) for settlement in US and Rs.1,124 crore for forex loss. Its profit before depreciation, interest, taxation and exceptional adjustments also declined by 12 per cent to Rs.1,619 crore from Rs.1,839 crore in the previous year.
The company's consolidated net sales for the year ended December 2011 moved up by 16.7 per cent to Rs.9,977 crore from Rs.8,551 crore in the preceding year. Its sales of API and others improved by 26 per cent to Rs.677 crore. The company expects to achieve base case sales of $2.2 billion not taking into account any upside from First To File (FTF) exclusivity launched during the year.
Its sales in North America moved up by 18 per cent to Rs.3,806 crore during the year ended December 2011 and the same in USA increased by 27 per cent to Rs.3,477 crore. Ranbaxy's Indian pharma business achieved a growth of 7 per cent to Rs.1,951 crore. Its sales in Europe grew by 11 per cent to Rs.1,387 crore and that in CIS region surged by 6 per cent to Rs.503 crore. Aided by tender sales in the African region, its sales grew by 23 per cent to Rs.883 crore. Asia Pacific region sales up by 8 per cent to Rs.503 crore.
Arun Sawhney, CEO & managing director, said, "I am delighted to share with you that Ranbaxy is the first Pharma company of Indian origin to have surpassed sales of $2 billion. We successfully launched our atorvastatin, generic Lipitor in the US. I am satisfied with the progress we are making in resolving the long standing issues with the US regulators. The settlement with the US FDA and provision for eventual penalties that the DOJ may levy, brings greater predictability to our business in the US, one of our largest markets."
"During the year, we laid emphasis on strengthening our processes, focusing R&D efforts on our chosen therapies, working towards improving manufacturing efficiencies and costs, re-evaluating our brand marketing strategy and directing our energies at markets of greater importance." he added.
In the US, Ranbaxy successfully launched atorvastatin with 180 days exclusivity (Generic Lipitor; Innovator: Pfizer) on November 30, 2011. The company also capitalized on Caduet as an authorized generic, AG (atorvastatin + amlodipine).
The company's standalone net sales for the year ended December 2011 increased by 42.4 per cent to Rs.7,476 crore from Rs.5,251 crore in the previous year. However, its standalone net loss touched to Rs.3,052 crore as against a net profit of Rs.1,149 crore.